Brits have continued to reap falling prices on non-food goods, as new data reveals they fell for the 36th consecutive month in March.
According to the BRC-Nielsen shop price index, British shop prices dropped by 1.7% in March, the smallest amount in seven months, however the decrease remained as retailers moved to slash prices in an attempt to woo customers.
The fall in overall shop prices was “a result of continuing intense competition and retailers ongoing investment in price,” said BRC Chief Exec Helen Dickinson.
“Despite consumer confidence remaining at zero, a relatively benign economic environment and a fiercely competitive market will see retailers continue to respond to their customers with prices and promotions to maintain market share as the Spring season kicks off.”
Deflation worseded across footwear, men‘s clothing, children‘s clothing and babywear, as well as furniture and carpets. Annual food deflation was 0.4% in March, as it was in February. Fresh food accelerated price falls, with fruit, milk, cheese, eggs, meat, vegetables, oils and fats prices all lower than the previous year. Ambient food prices grew, pushed higher by bread, cereals and alcohol.
“Shoppers are still making changes to how they spend to stay within their household budget and looking out for price cuts and promotions is one of the ways to save money.,” said Mike Watkins, Head of Retail and Business Insight at Nielsen.
“So with shop prices continuing to be lower than a year ago this is good news for shoppers. With spring arriving, retailers will be hoping that this drives store traffic, as so far this year retail sales have been rather unpredictable.”